Trump Media and Technology Group, the firm behind former U.S. President Donald Trump’s Truth Social platform, rejected a report suggesting it would raise $3 billion through a mix of equity and convertible bonds to purchase Bitcoin and other cryptocurrencies.
On May 26, the Financial Times published a report detailing the company’s alleged plan, citing information from six individuals familiar with the matter. In response, Trump Media criticized the outlet, stating, “It appears the Financial Times relies on unintelligent writers who are listening to even less credible sources.”
Trump Media did not immediately respond to a request for comment.
If Trump Media carries out the reported plan, the company will follow in the footsteps of firms like Strategy that have invested in cryptocurrency.
The Financial Times reported that Trump Media planned to issue $2 billion in equity and $1 billion in convertible bonds—financial instruments that can later convert into equity—though the total fundraising amount could still change.
Trump Media (DJT) anticipated offering the equity at the May 23 closing market rate. On that day, DJT shares closed at $25.72, marking a 4.6% daily gain. The company’s market valuation stood at $5.7 billion as of May 23.
According to reports, the company plans to follow a similar approach to firms like Strategy, Metaplanet, and Semler Scientific by allocating a portion of its funds to Bitcoin (BTC).
Some companies have stated that they view investing in cryptocurrency as a hedge against inflation and a way to avoid turning into “zombie companies.”
Trump Media’s Actions Likely to Draw Increased Scrutiny
The move was also likely to attract increased scrutiny toward the Trump family’s expanding involvement in cryptocurrency ventures. Democratic lawmakers opposed bipartisan legislation related to the family’s crypto activities and organized protests in response to the memecoin-themed dinner Trump hosted on May 22.
Trump has showcased his connections to the crypto sector through his involvement in non-fungible token collections, the Official Trump (TRUMP) and Melania (MELANIA) memecoins, a decentralized finance platform called World Liberty Financial, and a U.S. dollar-pegged stablecoin. Critics have raised concerns, arguing that these ventures pose a conflict of interest, especially as Trump could influence an industry that offers him financial gain.
The report states that Trump transferred a 53% stake in Trump Media and Technology into a revocable trust. His son, Donald Trump Jr., currently oversees the trust.
